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U.S. Imposed New Technology Export Controls

Well-known Chinese news site Sohu (NASDAQ: SOHU) reported not long ago that, in advanced technology fields such as semiconductors, the United States has recently been intervening frequently in normal market competition. Biden just signed the $280 billion chip bill to restrict semiconductor giants from investing in China. Now the U.S. Department of Commerce announced new export control measures. The U.S. Bureau of Industry and Security (BIS) issued an announcement stating that four “emerging and foundational technologies” were included in new export controls due to national security concerns. The four technologies are: fourth-generation semiconductor materials gallium oxide and diamond that can withstand high temperature and high voltage; ECAD software specially designed for 3nm and below chips; pressure gain combustion technology that can be used in rockets and hypersonic systems. Although BIS did not directly mention China, yet China is now one of the countries that the United States has listed under national security controls. As long as technology items are listed in the import and export control catalogue, the U.S. government will likely impose restrictions on China. This will actually lead to further decoupling between China and the US in the semiconductor field. In its announcement, BIS claimed that the inclusion of four technologies supporting the production of advanced semiconductors and gas turbine engines under export controls was the result of an agreement among the 42 participating countries of the Wassenaar Agreement at the December 2021 plenary meeting. Considering that China is increasing its investment in semiconductors, in order to maintain its own advantages, the United States is trying to hinder the development speed of China’s semiconductor industry.

Source: Sohu, August 13, 2022